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On The Money: Get the facts before choosing bankruptcy

By Chuck Myers

McClatchy-Tribune News Service (MCT)

Published: Monday, Sept. 30 2013 3:14 p.m. MDT

Declaring personal bankruptcy, either through Chapter 13 (reorganization) or Chapter 7 (liquidation), is a very serious matter that can affect a person’s credit standing for many years after.

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For those suffering extreme financial hardship, filing personal bankruptcy may seem the only option.

But declaring personal bankruptcy, either through Chapter 13 (reorganization) or Chapter 7 (liquidation), is a very serious matter that can affect a person’s credit standing for many years after.

Individuals should consider bankruptcy very carefully before starting the process. To that end, it would be well worth a visit to one of several good websites with information about Chapter 13 and Chapter 7 bankruptcy.

Here are a few:

—American Bar Association: Discusses bankruptcy advantages, disadvantages and alternatives. http://www.abanet.org/publiced/practical/bankruptcypros.html

—Bankruptcy Law: Serves up in-depth look at bankruptcy, including reasons for filing, 10 things a person should know about it, and an explanation of the process. http://www.bankruptcylaw.org/Basics/Good-People.html

—FindLaw: Features bankruptcy basics, with a special focus on Chapter 13 and Chapter 7. http://bankruptcy.findlaw.com/bankruptcy/bankruptcy-basics/

—Internal Revenue Service: Manuals that lay out the legal guidelines and procedures for filing for Chapter 7 and Chapter 13 bankruptcy. http://www.irs.gov/irm/part5/irm(UNDERSCORE)05-017-009.html

—U.S. Courts: Provides overview to all forms of bankruptcy, including Chapters 7 and 13. http://www.uscourts.gov/bankruptcycourts/bankruptcybasics.html

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©2013 McClatchy-Tribune Information Services

Distributed by MCT Information Services

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